We recently published a list of 10 Mega Cap Stocks Gaining Bullish Momentum This Week. In this article, we are going to take a look at where Tesla, Inc. (NASDAQ:TSLA) stands against other mega cap stocks gaining bullish momentum this week.

The S&P 500 index started the week with a bang after staying under pressure for a few days. There was a realization that Wall Street may have overestimated the impact of tariffs. Once the dust settles, the market will continue to go higher, just like the US economy which continues to grow despite challenges.

When the broader market corrects itself due to uncertainty, such as the one brought about by Trump’s tariff wars, mega-cap stocks also get affected. This provides investors, especially the ones that invest at regular intervals, to take another bite of these impressive stocks. The same situation happened during the last week, and we believe that after Monday’s impressive recovery, the trend is about to reverse.

Mega cap stocks like the ones in our list have driven the market in recent months and are therefore likely to be the ones leading it again. We decided to come up with the top 10 mega-cap stocks in the S&P index that have lost a considerable chunk of value in the last month and are now trading at a discount, a valuation gap that could quickly be recovered during this week’s trading.

To come up with the list of 10 oversold S&P 500 Mega-Cap Stocks To Trade This Week, we only looked at stocks with a market cap of at least $200 billion that have lost the most value in the last month.

Tesla, Inc. (NASDAQ:TSLA)  

Tesla, Inc. (NASDAQ:TSLA) is a manufacturer, designer, seller, developer, and lessor of energy storage and generation systems and electric vehicles. The company operates through Energy Generation and Storage and Automotive segments.

After a meteoric rise post the US presidential elections, Tesla investors have had a reality check. Matters have been made worse by the fact that Elon Musk’s involvement in politics is resulting in boycotts of his company’s products.

Figures coming out of Europe show that the EV maker’s sales in the continent went down 40% YoY, resulting in a paltry market share of just 1.8%. This happened despite the fact that total EV sales went up by 26% during the same period. Meanwhile, BYD, which is now the leading EV maker in the world, reported a 94% YoY increase in vehicles registered despite having to deal with increasing tariffs on Chinese EVs.

Despite losing a significant portion of the gains registered after the US elections, investors are still optimistic about the company. Cathie Wood of ARK Invest has said that she hasn’t changed her outlook on the stock, reiterating that she still sees the stock at $2,600 in 5 years.

Tesla (NASDAQ:TSLA) has lost one-third of its value so far this year but Cathie Wood’s ARK Autonomous Technology and Robotics ETF (with Tesla weightage at 10% of total holdings) is only down 6%. Clearly, Tesla is dragging down the performance of her ETF, but the current EV downturn does not bother her. She sees Tesla’s valuation realization through robotaxis:

“We think that robotaxis will account for 90% of the value of the company in five years.”

Overall, TSLA ranks 10th on our list of mega cap stocks gaining bullish momentum this week. While we acknowledge the potential of TSLA as a leading investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is as promising as TSLA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. This article is originally published at Insider Monkey.